Warren Buffett, the billionaire CEO of Berkshire Hathaway, has approximately $74 billion of the company’s $301 billion investment portfolio tied up in two leading artificial intelligence (AI) stocks. Apple and Amazon, both heavily reliant on AI for their growth, account for a significant portion of Berkshire’s invested assets. Apple, in which Berkshire has a $71.5 billion stake, has been incorporating AI solutions into its products for over a decade.
The company’s AI-driven model, Apple Intelligence, plays a crucial role in boosting the perceived value of its physical products and reigniting sales growth. Additionally, Apple’s Services segment, which includes subscription-driven platforms, has been consistently growing and helps maintain customer loyalty. Amazon, another major AI stock in Berkshire’s portfolio with a $2.4 billion investment, is known for its dominant online marketplace.
However, the company’s growth in cash flow and operating income is primarily driven by its AI-powered Amazon Web Services (AWS).
Buffett’s AI-driven investment strategy
As the world’s top cloud infrastructure service platform, AWS enables clients to access generative AI solutions and other tools to improve their marketing efforts, create virtual agents, and build large language models.
Beyond AWS, Amazon’s ventures into exclusive sporting events and the massive traffic its online marketplace receives encourage businesses to advertise with the company, boosting its ad pricing power. While AI wasn’t a core catalyst when Berkshire Hathaway first invested in Amazon six years ago, it has become integral to the company’s long-term growth prospects. Buffett, known for focusing on attractively valued companies with sustainable competitive advantages and thinking long-term, has historically invested in financial stocks and consumer staples.
However, his substantial investments in Apple and Amazon demonstrate the growing importance of AI in driving the success of these tech giants. As the AI revolution continues to unfold, Buffett’s bets on these two leading AI-driven companies highlight the potential for AI to reshape industries and drive long-term growth. With roughly a quarter of Berkshire’s invested assets tied to companies heavily reliant on AI, it is clear that the “Oracle of Omaha” recognizes the transformative power of this technology.
